Now, Penalty for not keeping Minimum Balance in SBI accounts

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SBI has reportedly made an announcement on Thursday to penalise account holders for not keeping Minimum Balance in their accounts.

The banks said it will be charging defaulters a penalty from April 1 onwards.

Maintaining a minimum balance of Rs. 5000 is mandatory for accounts in Metropolitan areas and Rs. 3000 in urban areas, Rs 2000 in semi-urban areas and Rs 1000 in rural areas.

The charges will be based on the difference between the minimum balance required and the shortfall. For metropolitan areas, if the shortfall is greater than 75 percent. the charges would be Rs. 100 plus service tax.

Bank would charge Rs 75 plus taxes if the shortfall is between 50-75 percent, and a fee of Rs 50 plus service tax would be charged for shortfall below 50 percent.
For Rural areas, the penalty would range from Rs 20-50 plus service tax for not maintaining the minimum balance.
SBI will now also charge people Rs 50 for carrying out over three cash transaction at its branch within a month. This charge is applicable currently as well. However, there is no upper limit on the amount of cash transacted.
SBI official said, “These cash transaction charges at branches are already existing. The same have been renewed for the next financial year from April 1. It is to deter the customers from visiting the branch but the charges are very nominal. As it is, the customer does not need to visit the branch often because we provide 10 free withdrawals in a month from ATMs.”

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